15 
HIGHWAY BONDS. 
at 3, 34, and 4 per cent compounded semiannually for varying 
periods from 1 to 30 years. 
TABLE 6.—Annual payments which, with interest at 3, 34, and 4 per cent, compounded * 
semianually, will amount to $1,000 at the end of a term of years." 
Annual payments. Annual payments. 
Years. Years. 
3 per cent. | 34 per cent.) 4 per cent. 3 per cent. | 34 per cent.) 4 per cent. 
1 |$1, 000. 0000 |$1, 000.0000 | $1, 000. 0000 16 $49. 5229 $47. 5689 | $45. 6734 
2 492. 5562 491. 3266 490. 1000 17 45. 8652 43. 9283 42. 0537 
3 323. 4583 321. 8368 320. 2221 18 42. 6221 40. 7032 38. 8504 
4 238. 9468 237. 1428 235. 3498 19 39. 7280 7. 8279 35. 9976 
5 188. 2699 186. 3672 184. 4796 20 37. 1306 35. 2499 33. 4426 
6 154. 5102 152. 5508 150. 6104 21 34. 7875 32. 9267 31. 1429 
7 130. 4475 128. 4252 126. 4560 22 32. 6639 30. 8236 29. 0636 
8 112. 3666 110. 3564 108. 3733 23 30. 7313 28. 9116 27.1759 
9 98. 3436 96. 3254 94. 3382 24 28. 9656 27.1670 25. 4557 
10 87. 1402 85. 1208 83. 1366 25 27. 3469 25. 5696 23. 8829 
11 77. 9872 75. 9717 73. 9954 26 25. 8522 24. 1024 22. 4404 
12 70. 3721 68. 3643 66. 3996 27 24. 4850 22. 7508 21. 1136 
13 63. 9399 61. 9427 59. 9924 28 23. 2149 21. 5024 19. 8901 
14 58. 4372 56. 4527 54. 5191 29 22. 0373 20. 3465 18. 7591 
15 53. 6780 51. 7080 49. 7928 30 20. 9428 19. 2739 ilefe, 7/13} 
1JIn Appendix D, page 98, Example 9 shows the method of calculating this table. 
Table 7 illustrates how an annual sinking fund of $32,345.83 
accumulates for three years to $100,000. 
TaBLE 7.—Accumulations of an annual payment of $32,345.83 with interest at 3 per cent 
compounded semiannually. 
Number | Principal at| Interest | Annual pay- ge otal t 
of beginning of} during ment at end | 2 Sa < 
6-month | 6-month 6-month | of 6-month aie ah 
intervals.| intervals. | intervals. intervals. Teale 
1 $0. 00 $0. 00 $0. 00 $0. 00 
2 0. 00 0. 00 32, 345. 83 32, 345. 83 
3 32, 345. 83 485. 19 0. 00 32, 831. 02 
4 32, 831. 02 492. 47 32, 345. 838 65, 669. 32 
5 65, 669. 32 985. 04 0.00 66, 654. 36 
6 66, 654. 36 999. 81 32, 345. 83 100, 000. 00 
To obtain the necessary annual payments to produce any multiple 
of $1 it is necessary merely to multiply the tabular value in Table 6 
by the corresponding multiple; thus, an annual sinking fund payment 
to retire $100,000 in 15 years at 34 per cent would be $5,170.80. 
Table 33, pages 120 and 121, gives the yearly or periodic payments 
necessary to accumulate $1 in a given number of years or periods 
at varying rates of interest. 
There are objections to the sinking-fund method of retiring high- 
way bonds. It may not be possible to obtain continuously the requi- 
site rate of interest on the sinking fund to discharge the debt at 
maturity. The existence of the sinking fund is a constant temptation 
to municipal officers to use it for purposes other than the purpose 
originally intended. If a county, for example, issues bonds for a 
second object, it is easy to argue that the sinking fund already accu- 
mulated may be used to purchase the new securities, and the finances 
